Pollution is caused by a market failure, in an industry in which there is

The SAT (Scholastic Aptitude Test) is often used as a signaling device by colleges to find high- qualified students

High scores on this test can certainly communicate a lot of other qualities about a student that may make it an efficient sorting device. However, can you think of any reason why at least occasionally a high score might not signal the correct information?

One reason why a consumer might buy from a high-priced local hardware store instead of going to a big discount store several miles away in another community is that

a. the local store will still have lower money prices b. the time cost of going to the local store is equal to going to the discount store c. comparing the sum of money prices and time cost, the local hardware store is a bargain for people who value time highly d. comparing the sum of money prices and time cost, the local hardware store is a bargain for people who earn low hourly wages e. the time cost of going to the discount store is less than going to the local hardware store